Asian Stocks Pause Before Xi-Trump APEC Meeting Amid Mixed Market Moves

Asian markets showed mixed movements ahead of a highly anticipated meeting between U.S. President Donald Trump and Chinese President Xi Jinping, expected to address trade tensions. Mainland Chinese markets, including the Shanghai Composite and Shenzhen Component indexes, experienced slight declines after recent highs driven by optimism for a trade truce, while the Hang Seng Index in Hong Kong remained relatively stable despite some losses in major stocks like Alibaba and Tencent. Investors approached the summit cautiously, aware of past patterns of escalating and de-escalating trade tensions, with hopes for concrete agreements tempered by concerns over limited progress on structural issues. Japan's stock market paused after a rally, affected by a stronger yen which pressured exporters, though tech stocks remained resilient due to optimism about AI investments and potential US-China trade improvements. Global equities broadly paused their rally with investors awaiting key central bank announcements and major tech company earnings, amid concerns over tariff risks and geopolitical uncertainties. The yen strengthened against the dollar following discussions between US and Japanese officials, highlighting the influence of currency movements on market performance amid the ongoing international economic developments.